The dollar is expected to continue its slide against the euro this week, it has been reported.

According to Bloomberg, the Federal Reserve is likely to cut the US base rate tomorrow, by around a quarter of a percentage point.

On Friday, the dollar was trading for 1.3878 against the euro and may move to between 1.3850 and 1.3880 today, the news agency has predicted.

That brings the dollar to within a cent of its record low against the euro, which was set in July this year.

Currency strategist Sue Trinh said the Federal Reserve "is the only central bank that is cutting rates at the moment,''  something which may subdue the dollar.

However, analysts interviewed by Reuters took a different view, with many saying that the expected rate cut could actually benefit the dollar.

One currency specialist told the news agency that a cut would prove the central bank is putting the economy first, which may reassure investors.